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Dis-Chem dispenses strong FY results despite employee strike
Dis-Chem managed to deliver a solid set of results despite a slowdown in consumer spending and a strike that halted production late last year. The group opened 20 new stores and its first store in Botswana. CNBC Africa's Kopano Gumbi spoke with CEO and Founder of Dis-Chem, Ivan Saltzman.
Thu, 16 May 2019 10:40:10 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Strategic placement of new stores and innovative customer engagement have driven Dis-Chem's success in a competitive retail landscape.
- Plans for further expansion include opening 22 new stores, with a focus on smaller towns and underserved communities.
- Challenges in the wholesale business necessitate improvements, while the company explores opportunities for standalone baby stores and expansion into Botswana.
Dis-Chem, a prominent South African pharmacy chain, has managed to deliver a solid set of results despite facing challenges such as a slowdown in consumer spending and a strike that disrupted production last year. The group successfully opened 20 new stores, including its first branch in Botswana, showcasing their commitment to expansion and growth in the region.
In a recent interview with CNBC Africa, Ivan Saltzman, the CEO and Founder of Dis-Chem, discussed the company's performance and future plans. Despite facing hurdles, Dis-Chem remains resilient and continues to gain market share in a fiercely competitive environment.
One of the key strategies that Dis-Chem has employed to maintain its competitive edge is the strategic placement of new stores. Saltzman emphasized the importance of opening stores in areas where there is a clear opportunity for growth. By strategically locating new stores near existing ones, Dis-Chem is able to leverage the combined foot traffic and strengthen its market presence. This approach has proven successful, with surrounding nodes experiencing growth in tandem with the new store openings.
Saltzman also highlighted the company's focus on innovation and customer engagement as key drivers of their success. By constantly introducing new promotions and enhancing the in-store experience, Dis-Chem has managed to attract and retain customers in a challenging retail landscape. Saltzman emphasized the importance of staying ahead of the curve and adapting to the evolving needs of consumers.
Looking ahead, Dis-Chem has ambitious plans for further expansion across South Africa. Saltzman revealed that the company intends to open 22 new stores in the coming year, with a particular focus on smaller towns and previously underserved communities. By tapping into these markets, Dis-Chem aims to reach a broader consumer base and solidify its position as a leading pharmacy chain in the region.
Despite the success in their retail segment, Dis-Chem has faced challenges in their wholesale business. Saltzman acknowledged the need for improvements in this area and highlighted the company's commitment to enhancing their wholesale operations to drive overall performance.
In response to rumors about opening standalone baby stores, Saltzman confirmed that Dis-Chem has plans to launch three such stores within the year, catering to the specific needs of parents and infants. Additionally, the company's expansion into Botswana signals their commitment to exploring new markets and diversifying their geographical footprint.
While Dis-Chem's African expansion plans are currently focused on Botswana, Saltzman expressed a desire to eventually expand further across the continent. However, he stressed the importance of consolidating their existing operations and ensuring profitability before venturing into new territories.
As Dis-Chem continues to grow, Saltzman remains focused on increasing the company's market share. With a current share of around 23%, the ultimate goal is to expand further and solidify Dis-Chem's position as a dominant player in the retail pharmacy sector. By understanding market dynamics and leveraging their strengths, Dis-Chem aims to maximize their market share and drive continued growth in the years to come.
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